Suppose the economy is in an equilibrium in which real GDP is less than potential GDP. To increase real GDP, the government can use a fiscal stimulus of
A) increasing taxes only.
B) decreasing government expenditure only.
C) decreasing taxes and/or increasing government expenditure.
D) decreasing government expenditure and simultaneously increasing taxes.
E) increasing the quantity of money.
C
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A Job Creation through Entrepreneurship Act, debated in the House of Representatives in 2009, would award grants to small business owners, some of which would be aimed at women, Native Americans, and veter-ans
The Act would provide $189 million in 2010 and $531 million between 2010 and 2014 . Explain how you would expect this Act to influence what, how, and for whom goods and services are produced in the United States.
If, for a given percentage increase in price, quantity supplied increases by a proportionately larger percentage, then supply is
A) unit elastic. B) relatively inelastic. C) elastic. D) perfectly elastic.